Update shared on04 Oct 2025
Fair value Increased 0.21%Aflac's analyst price target has been raised slightly, with an increase of $2 to $108. Analysts highlight strong Q2 sales driven by new product rollouts and improved net interest income.
Analyst Commentary
Following the release of Aflac's second quarter results, analysts have reacted by adjusting price targets upward, reflecting recent business momentum and updated financial expectations. The analyst community offered both encouraging observations and areas for caution based on the company's current performance and forward-looking prospects.
Bullish Takeaways- Bullish analysts raised price targets, expressing confidence in Aflac's sales rebound, particularly driven by the successful launch of the new cancer product.
- Improved net interest income and strong revenue from the company's Japanese operations contributed to upward earnings per share revisions for the second half of the year.
- Upbeat quarterly results have prompted analysts to update and enhance their financial models, reflecting better-than-expected operational execution.
- The company's ability to capitalize on product innovation and drive growth in key markets was a noted factor in improving overall sentiment around valuation.
- Bearish analysts remain cautious about the sustainability of new cancer product sales, noting that current momentum may wane after the initial uptake from the existing customer base.
- Some price targets, despite being raised, coincide with maintained neutral or underperform ratings, suggesting ongoing uncertainty about sustaining recent growth trends.
- The outlook for future quarters hinges on Aflac's execution and ability to drive incremental growth beyond one-time effects from new product launches.
What's in the News
- On August 12, 2025, Aflac announced it is increasing its equity buyback plan authorization by 100,000,000 shares, bringing the total authorization to 380,000,000 shares (company filing).
- Between April 1 and June 30, 2025, Aflac repurchased 7,915,802 shares for $829.2 million. This completes the repurchase of 249,095,785 shares totaling $15,867.46 million under the buyback plan initially announced in 2017 (company filing).
Valuation Changes
- Fair Value Estimate has increased slightly, now at $108.31 from $108.08.
- Discount Rate has declined marginally, moving from 6.83% to 6.79%.
- Revenue Growth projection is up very slightly, at 5.11% compared to 5.10% previously.
- Net Profit Margin estimate is nearly unchanged, showing a small decrease from 20.40% to 20.39%.
- Future P/E Ratio expectation has edged up, rising to 16.70x from 16.68x.
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